Last close As at 05/08/2026
EUR3.07
▲ 0.03 (0.99%)
Market capitalisation
EUR339m
Research: Consumer
Borussia Dortmund’s Q224 results reflect the positive effects of a more normal football season versus the disruption from the FIFA World Cup in the comparative Q223 period. The reiterated financial guidance for FY24 looks well underpinned given the phasing of games and with the excitement of the final stages of the Champions League to come. The share price continues to look very attractive versus our slightly adjusted sum-of-the-parts valuation of €10.40/share and its own historical multiples.
Borussia Dortmund |
A more normal schedule |
Q224 results |
Travel and leisure |
5 March 2024 |
Share price performance
Business description
Next event
Analysts
Borussia Dortmund is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||
Borussia Dortmund’s Q224 results reflect the positive effects of a more normal football season versus the disruption from the FIFA World Cup in the comparative Q223 period. The reiterated financial guidance for FY24 looks well underpinned given the phasing of games and with the excitement of the final stages of the Champions League to come. The share price continues to look very attractive versus our slightly adjusted sum-of-the-parts valuation of €10.40/share and its own historical multiples.
Year end |
Revenue (€m) |
EBITDA (€m) |
PBT* |
EPS* |
DPS |
EV/EBITDA (x) |
P/E |
Yield |
06/22 |
351.6 |
83.8 |
66.3 |
0.61 |
0.00 |
4.7 |
5.6 |
N/A |
06/23 |
418.2 |
123.2 |
104.1 |
0.63 |
0.00 |
3.2 |
5.4 |
N/A |
06/24e |
433.6 |
113.6 |
103.5 |
0.63 |
0.06 |
3.5 |
5.4 |
1.8 |
06/25e |
457.0 |
121.3 |
111.5 |
0.68 |
0.06 |
3.2 |
5.0 |
1.8 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
More games equal revenue and margin growth
More home games in Q224 (10) than in Q223 (five) drove a significant c 32% yoy increase in Borussia Dortmund’s revenue to €154.3m (Q223: €117.3m). This included growth in all revenue streams but especially for those that vary according to the number of games, like Match Operations (+72% y-o-y), TV Marketing (+40%), Merchandising (+26%) and Conference and Catering (+34%), versus Advertising (+8%). Naturally, more games lead to higher game-related expenses but EBITDA still grew at a healthier rate, c 46% y-o-y to €42.1m (Q223: €28.9m), than revenue. Free cash flow generation deteriorated a little year-on-year, mainly due to higher investment in working capital and the asset base. As a result, the net debt position increased from €17.9m at the end of Q124 to €41.2m.
FY24 guidance reiterated
Management has reiterated its FY24 guidance issued with the publication of the FY23 results, not untypical at this stage given the first team remains active in the Champions League. There is room for improvement in the first team’s Bundesliga form. At the time of writing, the team is placed fourth, just one point above the fifth-place team, and some 20 points from the leaders, Bayer Leverkusen. Fewer games in H224 versus H124, assuming no progress beyond the ‘round of 16’ in the Champions League, and the absence of net transfer income, means that FY24 guidance includes lower absolute revenue and an EBITDA loss in H224 versus H124. We maintain our estimates.
Valuation: Significant discount persists
Our asset-backed sum-of-the-parts valuation has reduced to €10.40 per share from €10.63 per share, predominantly due to the company’s higher net debt position. The prospective FY24e EV/EBITDA of 3.5x, a substantial discount to the average since FY07 of 6.7x, supports our belief the share price is significantly undervalued. The recent weakness in the share price likely reflects concerns about the first team’s current Bundesliga position.
Exhibit 1: Financial summary
€m |
2020 |
2021 |
2022 |
2023 |
2024e |
2025e |
||
Year end 30 June |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||
Revenue |
|
|
370.2 |
334.2 |
351.6 |
418.2 |
433.6 |
457.0 |
Cost of Sales |
(22.4) |
(19.6) |
(22.6) |
(24.1) |
(24.3) |
(25.1) |
||
Gross Profit |
347.8 |
314.6 |
329.0 |
394.1 |
409.3 |
431.8 |
||
EBITDA |
|
|
63.0 |
39.0 |
83.8 |
123.2 |
113.6 |
121.3 |
Operating profit (before amort. and excepts.) |
|
|
49.1 |
25.3 |
70.5 |
110.3 |
100.0 |
107.3 |
Amortisation of acquired intangibles |
(88.3) |
(92.6) |
(87.4) |
(89.7) |
(83.8) |
(83.8) |
||
Exceptionals |
(3.9) |
(4.8) |
(9.1) |
(3.6) |
0.0 |
0.0 |
||
Reported operating profit |
(43.1) |
(72.1) |
(26.0) |
16.9 |
16.3 |
23.6 |
||
Net Interest |
(3.4) |
(1.1) |
(4.2) |
(6.1) |
3.5 |
4.2 |
||
Joint ventures & associates (post tax) |
(0.0) |
0.1 |
0.1 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
45.6 |
24.3 |
66.3 |
104.1 |
103.5 |
111.5 |
Profit Before Tax (reported) |
|
|
(46.6) |
(73.2) |
(30.2) |
10.8 |
19.7 |
27.7 |
Reported tax |
2.6 |
0.3 |
(1.7) |
(1.2) |
(3.0) |
(3.0) |
||
Profit After Tax (norm) |
30.6 |
16.3 |
64.6 |
70.0 |
69.6 |
74.9 |
||
Profit After Tax (reported) |
(44.0) |
(72.8) |
(31.9) |
9.6 |
16.7 |
24.7 |
||
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
30.6 |
16.3 |
64.6 |
70.0 |
69.6 |
74.9 |
||
Net income (reported) |
(44.0) |
(72.8) |
(31.9) |
9.6 |
16.7 |
24.7 |
||
Average Number of Shares Outstanding (m) |
92.0 |
92.0 |
105.6 |
110.4 |
110.4 |
110.4 |
||
EPS - normalised (c) |
|
|
33.3 |
17.7 |
61.2 |
63.4 |
63.0 |
67.9 |
EPS - normalised fully diluted (c) |
|
|
33.3 |
17.7 |
61.2 |
63.4 |
63.0 |
67.9 |
EPS - basic reported (€) |
|
|
(0.48) |
(0.79) |
(0.30) |
0.09 |
0.15 |
0.22 |
Dividend (€) |
0.00 |
0.00 |
0.00 |
0.00 |
0.06 |
0.06 |
||
Revenue growth (%) |
(0.0) |
(9.7) |
5.2 |
18.9 |
3.7 |
5.4 |
||
Gross Margin (%) |
94.0 |
94.1 |
93.6 |
94.2 |
94.4 |
94.5 |
||
EBITDA Margin (%) |
17.0 |
11.7 |
23.8 |
29.5 |
26.2 |
26.5 |
||
Normalised Operating Margin (%) |
13.2 |
7.6 |
20.0 |
26.4 |
23.1 |
23.5 |
||
BALANCE SHEET |
||||||||
Fixed Assets |
|
|
441.5 |
389.8 |
361.9 |
440.7 |
481.3 |
461.2 |
Intangible Assets |
229.7 |
193.4 |
127.8 |
169.7 |
159.9 |
147.8 |
||
Tangible Assets |
193.0 |
183.5 |
172.5 |
182.3 |
183.6 |
175.7 |
||
Investments & other |
18.8 |
12.9 |
61.6 |
88.8 |
137.8 |
137.8 |
||
Current Assets |
|
|
76.5 |
60.7 |
96.6 |
71.1 |
43.1 |
77.2 |
Stocks |
6.8 |
6.8 |
4.4 |
5.4 |
5.4 |
5.4 |
||
Debtors |
36.5 |
29.9 |
45.8 |
38.2 |
38.6 |
39.0 |
||
Cash & cash equivalents |
3.3 |
1.7 |
10.6 |
4.5 |
(23.9) |
9.8 |
||
Other |
29.9 |
22.2 |
35.7 |
22.9 |
22.9 |
22.9 |
||
Current Liabilities |
|
|
(122.6) |
(163.6) |
(137.3) |
(161.0) |
(161.9) |
(169.4) |
Creditors |
(110.2) |
(100.1) |
(132.6) |
(144.5) |
(145.3) |
(146.2) |
||
Tax and social security |
(0.0) |
(0.0) |
(0.0) |
(1.1) |
(1.1) |
(1.1) |
||
Short term borrowings |
(8.0) |
(56.9) |
0.0 |
(12.8) |
(12.8) |
(12.8) |
||
Finance leases |
(4.4) |
(4.2) |
(4.6) |
(2.6) |
(2.6) |
(2.6) |
||
Other |
0.0 |
(2.3) |
0.0 |
0.0 |
0.0 |
(6.6) |
||
Long Term Liabilities |
|
|
(89.9) |
(54.3) |
(48.0) |
(68.1) |
(63.1) |
(58.1) |
Long term borrowings |
0.0 |
0.0 |
0.0 |
(8.8) |
(8.8) |
(8.8) |
||
Finance leases |
(20.1) |
(16.8) |
(12.5) |
(10.4) |
(5.4) |
(0.4) |
||
Other long term liabilities |
(69.9) |
(37.5) |
(35.5) |
(48.9) |
(48.9) |
(48.9) |
||
Net Assets |
|
|
305.4 |
232.6 |
273.2 |
282.7 |
299.4 |
310.9 |
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Shareholders' equity |
|
|
305.4 |
232.6 |
273.2 |
282.7 |
299.4 |
310.9 |
CASH FLOW |
||||||||
Operating Cash Flow |
59.5 |
37.9 |
79.6 |
117.1 |
117.1 |
125.5 |
||
Working capital |
(18.0) |
(6.9) |
12.7 |
8.9 |
0.5 |
0.5 |
||
Exceptional & other |
(38.9) |
(13.6) |
(56.9) |
(70.5) |
(85.5) |
(76.7) |
||
Tax |
0.3 |
0.0 |
0.0 |
0.0 |
(3.0) |
(3.0) |
||
Net operating cash flow |
|
|
3.0 |
17.4 |
35.4 |
55.5 |
29.1 |
46.3 |
Capex |
(6.1) |
(3.4) |
(1.7) |
(21.4) |
(15.0) |
(6.0) |
||
Net investment in intangibles |
(44.6) |
(58.6) |
(49.4) |
(55.3) |
(41.0) |
0.8 |
||
Acquisitions/disposals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net interest |
(3.3) |
(1.4) |
(0.3) |
(1.1) |
3.5 |
4.2 |
||
Equity financing |
0.0 |
0.0 |
86.5 |
0.0 |
0.0 |
0.0 |
||
Dividends |
(5.5) |
0.0 |
0.0 |
0.0 |
0.0 |
(6.6) |
||
Other |
(3.9) |
52.5 |
(61.6) |
16.3 |
(5.0) |
(5.0) |
||
Net Cash Flow |
(60.6) |
6.4 |
8.8 |
(6.1) |
(28.4) |
33.7 |
||
Opening net debt/(cash) |
|
|
(44.4) |
29.1 |
76.2 |
6.6 |
30.1 |
58.5 |
Other non-cash movements |
(12.9) |
(53.6) |
60.8 |
(17.4) |
0.0 |
0.0 |
||
Closing net debt/(cash) |
|
|
29.1 |
76.2 |
6.6 |
30.1 |
58.5 |
24.8 |
Source: Company accounts, Edison Investment Research
|
|
Research: Healthcare
Creo Medical has marked another milestone in advancing utility of its electrosurgical devices with the first use of its MicroBlate Flex device in a robotic-guided lung tissue ablation procedure (as part of an ongoing clinical study). Although not disclosed by the company, we believe this procedure was performed on Creo’s Kamaptive technology partner Intuitive Surgical’s ION bronchoscopy-focused robotics platform. Proving and expanding compatibility with robotic platforms has been an overarching goal for Creo and we see this as a notable step towards achieving this. The successful procedure also bodes well for the company’s partnership with Intuitive Surgical, which holds an estimated 57% market share in robotic surgical systems and has an installed base of 534 ION systems, indicative of the sizeable market opportunity for Creo. For reference the lung cancer therapeutic market size is estimated at $28bn in 2022 and is expected to reach c $60bn by 2032.